Question
Consider the following table for different assets for 1926 through 2020. Series Average return Standard Deviation Large-company stocks 12.2% 19.7% Small-company stocks 16.2 31.3 Long-term
Consider the following table for different assets for 1926 through 2020.
Series | Average return | Standard Deviation |
---|---|---|
Large-company stocks | 12.2% | 19.7% |
Small-company stocks | 16.2 | 31.3 |
Long-term corporate bonds | 6.5 | 8.5 |
Long-term government bonds | 6.1 | 9.8 |
Intermediate-term government bonds | 5.3 | 5.6 |
U.S. Treasury bills | 3.3 | 3.1 |
Inflation | 2.9 | 4.0 |
What range of returns would you expect to see 68 percent of the time for long-term corporate bonds?
Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
What about 95 percent of the time?
Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
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